THE Department of Trade and Industry (DTI) pitched $14.07 billion worth of investments for the supply chain and logistics industry—which has been reeling from the shipment delays amid container imbalance—to Japanese investors.
Trade Secretary Ramon Lopez said in a virtual event on Tuesday that the supply chain and logistics sector must invest at least $14.07 billion in the next 10 years.
This is to expand the capacities of the industry’s warehouse and cold storage facilities, in addition to its container years and integrated logistics depot, he said.
“There are areas of opportunity for Japanese investments in logistics, smart manufacturing, electronics design services and Internet of Things [IoT],” Lopez added.
In addition, Lopez identified opportunities in the construction industry, noting that total value of construction works reached $1.6 billion in the first quarter.
The government’s infrastructure program, for one, is committed to spend $94.9 billion, initially identifying 75 flagship projects, he noted.
Japanese investors can also invest to address the housing backlog in the country as it is expected to reach 12.4 million units by 2030, the trade official said.
Lopez also shared the increasing demand for health-care facilities amid the pandemic.
“With the recent Covid-19 pandemic, we have seen the urgency of improving the health systems and infrastructure in the Philippines,” he said. “The Philippine health system is limited to cope with the growing number of confirmed and suspected cases.”
The DTI chief also cited manufacturing of several products as area of cooperation. These include personal protective equipment, medical devices and pharmaceutical products; automotive parts; construction materials; electronics; chemicals; shipbuilding; and aerospace parts.
The semiconductor and electronics industry, Lopez said, is still the top export revenue generator, comprising over 60 percent of the total outbound shipments.
“Additionally, medical devices electronics manufacturing is also a growing industry supported by existing supply chain for manufacturing,” he added.
Lopez said that the country has a growing capacity for electronics manufacturing services (EMS) and original design manufacturing, in addition to backend semiconductor assembly, testing and packaging.
He listed the following EMS capabilities in the country: components and sub-assembly, box-build assembly, new product introduction and complex equipment assembly.
As such, he said this covers computers, office equipment, telecommunication equipment, communications and radar, control and instrumentation, medical and industrial, automotive electronics, e-vehicle and consumer electronics.
“The Philippines has a strong manufacturing and services sectors contributing significantly to its GDP. Hence, the country is ready to Make It Happen for Japanese manufacturers that rely on innovative product design, high quality standards, and world-class manufacturing workforce,” Lopez concluded.